2019 Commentaries | February Notes Flashcards
When I have multiple breakers to chose from I always pick the lowest (bearish) braeker or the highest (bullish breaker) and allow money managment that the price might want to trade deeper (higher or lower).
What is the protocol for trading NFP?
The plan for trading the NFP is to see which side of the market gets taken out first and then trade the following move.
When is going to be the bulk of the volume inside the daily range?
The bulk of the trading volume is going to be between 4GMT (new York mindnight) and 18GMT which is 2PM NY time.
Which opening price on the daily candle should I look for?
Always using the 4GMT Opening price and not adjusting for daylight savings time. 4GMT opening price for the whole year.
If bearish: Ideal shorts are going to occur above, at or just below the opening price.
If bullish: Ideal longs are going to occur below, at or just above the opening price.
Which are high probability reclaimed bearish OBs?
One of the highest probability bearish reclaimed blocks is usually paired with the breaker. Price will redistribute at the Reclaimed OB and then the low to create the breaker. Focusing on selling at the MT of bearish reclaimed OB.
Why is this even a bearish reclaimed OB? First It was a bearish OB and SM was selling int hat first expansion higher later confirmed by retracement lower. Then price has another expansion THRU the bearish OB and later once price comes back to bearish reclaimed Block It reuses it.
What is a valid turtle soup on the buy stops.
For a VALID TURTLE SOUP reversal what ICT likes to see (for selling) price trading above the old high (tagging Buy Stops) and then DISPLACEMENT LOWER back below old high just like in this case.
Example: Price first tapped the Buy Stops, uses old high as support and then creates another high. Three Indians pattern (accumulation of shorts) and then selling lower. DISPLACEMENT back below the old high. And if turtle Soup is really VALID price should not trade back above the bearish Reclaimed BLOCK.
IF the turtle soup is valid and price is bearish then the expansion after the stop hunt should create a bearish Breaker.
How big should the stop hunt baove the high be?
Price will dig into liquidity that would be resting above old highs 10, 20 and 30 pips.
What is the meaning behind Painting the Wall & IPDA?
Painting the wall. If I have paint and apply it to the upstroke at the beginning there is always going to be RICH delivery of paint but the further I go up it gets spotty (poor) so I would want to come back for nice even delivery. Exactly the same is with IPDA price delivery.
Between two price points a Balanced Price Range would be price passing up and then coming back down between it. That is the nature of IPDA and that is ALL IPDA does.
IPDA simply wants to rebalance previous moves and run to outside of the present range to neutralize or engineer liquidity above and below old running points.
IPDA does not see my stop and it does not know what my stop it. It just knows that around those turning points there is going to be liquidity because everyone was trained to trade like this. This is also the reason why IPDA DIGS into the liquidity pools.
IMBALANCE → REBALANCE → LIQUIDITY.
When are true turning points intraday going to occur?
The Key turning points during the Intraday Price Action are going to occur inside the KZs.
The turning points are going to be paired with one of the KZs (Asia, London, New York, London Close)
What is news embargo?
It simply means a lot of News dropping at 8:30 and that is when I should anticipate volatility. There could a expansion or a reversal.
Which displacements are going to be valid?
When selecting displacements from which I can trade off of I want to see price displacement and a FVG inside it.
Focus on the price swings that occur during the London and New York and not so much during the Asia.
What is natural Break in market structure and High Energy Low?
Classic Break in Market Structure: Is when price trades above a STH and then the low in between the STHs is broken
HIGH ENERGY LEVELS: meaning the market does a sudden move to create a STH or STL. A lot of speed in very little time. High energy lows and highs are going to be important in the future. They should be marked on Bodies of the candles and VALID Break is also on bodies of the candles. If price ever trades thru the level they will act as real support and resistance. There has to also be a meaning behind High ENERGY Low or High. I have to ask myself why did price do that. It either has to take liquidity or rebalance an inefficiency.
Natural break in Market Structure: that occurs when the High energy low or high is broken on bodies of the candles and this level will act as support broken now resistance or vice versa.
Trading the high energy Lows:
High energy low created → natural break in market structure on bodies of the candles → retest (kissing the level) → MOVES AWAY lower → price comes back for a RETRADE and it has to occur during the KZ. == This is a signature of IPDA.
There has to be a retest and then movement away. RETRADE has to occur during KZ.
What is the big figure protocol?
If price reaches a Big Figure level like 1.2800 then the protocols are to look 10, 20 and 30 pips as much below or above that level for Liquidity Tags
I should take the big figure level and look what is resting below 10, 20 and 30 pips BECAUSE the market will seek for liquidity below the big figure level (as it is trading lower look for PD arrays resting below max of 30 pips.). So potential for the market is that it can trade all the way into 1.2770 for a max of 30 pips.
When are high probability setups going to form?
IF all three PAIRS ARE TRADING INTO THE LIQUIDITY POOL AT THE SAME TIME THE CONDITION IS RIGHT = MEANING FUTURE HIGH PROBABILITY SETUPS ARE GOING TO FORM.
